2016 TAX PLANNING
Quick Reference Guide
Provincial/Territorial Income Tax Rates*
2016 Top Marginal Tax Rates (Federal and Provincial Rates Combined)*
(current to Jan. 2016)
British Columbia
First $38,210
$38,210 – $76,421
$76,421 – $87,741
$87,741 – $106,543
106,543 and over
Alberta
First $125,000
$125,000 – $150,000
$150,000 – $200,000
$200,000 – $300,000
$300,000 and over
Saskatchewan
First $44,601
$44,601 – $127,430
$127,430 and over
Manitoba
First $31,000
$31,000 – $67,000
$67,000 and over
Ontario
First $41,536
$41,536 – $83,075
$83,075 – $150,000
$150,000 – 220,000
$220,000 and over
Quebec
First $42,390
$42,390 – $84,780
$84,780 – $103,150
$103,150 and over
New Brunswick
First $40,492
$40,492 – $80,985
$80,985 – $131,664
$131,664 – $150,000
$150,000 and over
Nova Scotia
First $29,590
$29,590 – $59,180
$59,180 – $93,000
$93,000 – $150,000
$150,000 and over
Prince Edward Island First $31,984
$31,984 – $63,969
$63,969 and over
Newfoundland
First $35,148
& Labrador
$35,148 – $70,295
$70,295 – $125,500
$125,500 – $175,700
$175,700 and over
Yukon
First $45,282
$45,282 – $90,563
$90,563 – $140,388
$140,388 – $500,000
$500,000 and over
Northwest Territories First $41,011
$41,011 – $82,024
$82,024 – $133,353
$133,353 and over
Nunavut
First $43,176
$43,176 – $86,351
$86,351 – $140,388
$140,388 and over
5.06%
7.70%
10.50%
12.29%
14.70%
10.00%
12.00%
13.00%
14.00%
15.00%
11.00%
13.00%
15.00%
10.80%
12.75%
17.40%
5.05%
9.15%
11.16%
12.16%
13.16%
16.00%
20.00%
24.00%
25.75%
9.68%
14.82%
16.52%
17.84%
20.30%
8.79%
14.95%
16.67%
17.50%
21.00%
9.80%
13.80%
16.70%
7.70%
12.50%
13.30%
14.30%
15.30%
6.40%
9.00%
10.90%
12.80%
15.00%
5.90%
8.60%
12.20%
14.05%
4.00%
7.00%
9.00%
11.50%
*The table includes and assumes all proposed rates from 2016 provincial
budgets, where applicable, have been passed.
Interest/Foreign
Dividends
47.70%
48.00%
48.00%
50.40%
53.53%
53.31%
53.30%
51.37%
54.00%
48.30%
48.00%
47.05%
44.50%
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
PEI
Nova Scotia
Newfoundland/Labrador
Yukon
NWT
Nunavut
Capital Gains**
Eligible Dividends
23.85%
24.00%
24.00%
25.20%
26.77%
26.66%
26.65%
25.69%
27.00%
24.15%
24.00%
23.53%
22.25%
31.30%
31.71%
30.33%
37.78%
39.34%
39.83%
36.27%
34.22%
41.58%
38.47%
24.81%
28.33%
33.08%
Non-Eligible
Dividends
40.61%
40.24%
40.06%
45.69%
45.30%
43.84%
45.37%
43.87%
46.77%
39.40%
40.18%
35.72%
36.36%
*Rates include federal and provincial combined marginal tax rates, including provincial surtaxes.
**The capital gains rate for qualifying securities donated to registered charities in-kind is 0%.
RRSP/TFSA Contribution Limits
18% of previous year’s earned
income to a maximum of:
2016 – $25,370
2017 – $26,010
TFSA Contribution Limit
2016 – $5,500
Withholding Tax Rates for
RRSP/RRIF Withdrawals
Up to $5,000
$5,001 – $15,000
Over $15,000
Quebec
21%
26%
31%
All Other Provinces
10%
20%
30%
2016 Federal Income
Tax Rates
First $45,282
$45,282 – $90,563
$90,563 – $140,388
$140,388 – $200,000
$200,000 and over Basic personal exemption
15.0%
20.5%
26.0%
29.0%
33.0%
$11,474
Attribution Rules
Recipient
Gift
No or low
interest loan
Loan at prescribed
or commercial rate
Attributed to “giftor”
Attributed to “giftor”
No attribution
Attributed to lender
Attributed to lender
No attribution
No attribution
No attribution
No attribution
Attributed to “giftor”
No attribution
No attribution
Attributed to lender
No attribution
No attribution
No attribution
No attribution
No attribution
No attribution
No attribution
No attribution*
No attribution
No attribution
No attribution
Spouse or Partner
Income
Capital Gains
2nd Generation Income
Child under 18
Income
Capital Gains
2nd Generation Income
Child over 18
Income
Capital Gains
Corporation (excluding small business corporation)
Attribution may result if
reason for transfer is to confer a
benefit on a family member and
reduce family tax payable
Attribution may result if
No attribution
reason for transfer is to confer a
benefit on a family member and
reduce family tax payable
*Normally, loan must be for education, investment in a house, or to earn business income to avoid attribution.
Note: Attribution generally ceases on death or in cases of non-residency.
2016 TAX PLANNING
2016 Employment Insurance (EI) Premiums
All provinces/territories except Quebec
$50,800
1.88%
2.63%
$955.04
$1,337.06
Quebec
$50,800
1.52%
2.13%
$772.16
$1,081.02
All provinces/territories except Quebec
$54,900
$3,500
$51,400
4.95%
$2,544.30
$5,088.60
Quebec*
$54,900
$3,500
$51,400
5.325%
$2,737.05
$5,474.10
2016 Canada Pension Plan Premiums
Maximum Pensionable Earnings
Basic Exemption
Maximum Contributory Earnings
Employee and Employer Rate
Maximum Employee/Employer contribution
Maximum Self-employed contribution
*In Quebec contributions are made to the Quebec Pension Plan.
2016 CPP and QPP Retirement Benefit
Age
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
Withdrawal
3.33%
3.45%
3.57%
3.70%
3.85%
4.00%
4.17%
4.35%
4.55%
4.76%
5.00%
5.28%
5.40%
5.53%
5.67%
5.82%
5.98%
6.17%
6.36%
Age Withdrawal
79
6.58%
80
6.82%
81
7.08%
82
7.38%
83
7.71%
84
8.08%
85
8.51%
86
8.99%
87
9.55%
88
10.21%
89
10.99%
90
11.92%
91
13.06%
92
14.49%
93
16.34%
94
18.79%
95+ 20.00%
Maximum monthly benefit (assuming payments begin at age 65): $1,092.50
Marginal versus Effective Tax Rates
– What’s the Difference?
2016 Old Age Security (OAS) Payment Rates (current to Jan. 2016)
Marginal Tax Rate: Tax rate applicable to last
dollar of income earned. Does not consider
deductions and credits available to taxpayer.
Maximum Monthly Benefit
$570.52
Maximum Annual Income
Pensioners with a net income of $73,637 or more are subject to OAS
clawback. Clawback rate is 15% for each dollar beyond $73,637. OAS
is fully eliminated once net income reaches $119,398.
Mackenzie Tax Brochures
Commonly Used CRA Guides
P105
Students and Income Tax
P113
Gifts and Income Tax
RC4092Registered Education Savings
Plans (RESPs)
RC4110 Employee or Self-employed?
RC4112 Lifelong Learning Plan (LLP)
RC4169Tax Treatment of Mutual Funds
for Individuals
RC4466
Tax Free Savings Account Guide
for Individuals
RC4177 Death of an RRSP Annuitant
RC4178 Death of a RRIF Annuitant
T4002 Business and Professional Income
T4011
Preparing Returns for Deceased Persons
T4036 Rental Income
T4037 Capital Gains
T4040RRSPs and Other Registered
Plans for Retirement
T4055 Newcomers to Canada
T4058 Non-Residents and Income Tax
For more information, please visit mackenzieinvestments.com/taxandestate
Telephone: 1-888-653-7070 Fax: 1-866-766-6623
180 Queen Street West, Toronto, ON M5V 3K1
02323
Effective Tax Rate: Actual rate of tax paid by
taxpayer. Considers deductions, credits and
graduated tax brackets.
mackenzieinvestments.com/taxandestate
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TE1005 1/16
Maximum Yearly Insurable Earnings
Employee’s Premium Rate
Employer’s Premium Rate
Maximum Yearly Employee Premium
Maximum Yearly Employer Premium
RRIF Minimum Withdrawals